Vote due on 1% benefits cap
8th Jan 2013
On Tuesday, members of parliament are due to vote on controversial government plans to put into place a 1% cap on annual increases in
various benefits and tax credits for three years.
The coalition argues that benefits should not be rising at a faster rate than inflation, the measure by which they have been previously linked. In 2012-13, benefits increased by more than 5%.
The government wants to to cap increases in employment and support allowance, jobseeker's allowance, elements of housing benefit and income support at 1% up until 2016.
Also to be affected are maternity allowance, sick pay, maternity pay and paternity pay as well as the couple and lone parent elements of the working tax credit and the child element of the child tax credit.
The coalition is making the changes - which, if approved, will come into place in April - as part of its plans to cut the deficit.
However labour claims these changes will result in cuts in support for millions of working people.
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